Economic Growth: What does it mean for the Housing Market?

(The Express Wire via Comtex)

The forward momentum since 2008 has been a year on year growth for the economy. Fast forward ten years and we have higher salaries, lower unemployment, and higher consumer consumption.

Economic Growth Year on Year Since the Great Recession of 2008

With higher salaries comes increased spending. House prices have increased, with more people wanting to buy bigger homes for expanding families.

There are fewer homes available, so the increased demand has caused house prices to increase even further. Fewer houses sold in 2018 than in 2017. House building is declining. The competition for buying a new house causes further increases.

Current State of the Housing Market

A person doesn’t have to be a market analyst to understand that higher demand, but lower availability, will cause prices to increase. Higher salaries, lower unemployment, and increased spending support the foundations for economic growth. People are also mortgaging less.

Increased salaries and lower unemployment mean that people have more money set aside for their large purchases. Having a cushion shows that people have learned from mistakes and are being more sensible with their money.

The housing market has stronger foundations, and the crash of 2008 seems to be well behind us.

Younger people have higher salaries and are moving out of family homes sooner. With the increase in remote working, and improvements in the technological infrastructures on the outskirts of cities, cheaper housing is available for people in previously downmarket areas.

Is it Still About Location, Location, Location?

Better technology and communications mean that we can live further away from our workplace. The commute might be longer, but more companies offer remote working. We work from home two days a week and commute for three. This means that house prices in the suburbs are also increasing.

With improved technology comes the ability to live in places that were too hot or too remote to consider. Improvements in essential services mean that people can live out of the city. We used to see cheaper houses further away from cities that is no longer the case.

To Sum Up

According to the team at Element Homebuyers, it does not matter what condition a home is in; there are still buyers that will make a fair and reasonable offer. Some can even pay in cash to give us an instant boost to our finances at the time when we need it most.

Press Release Distributed by The Express Wire

To view the original version on The Express Wire visit Economic Growth: What does it mean for the Housing Market?

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